Facer – A Decade at War . . .
 Discussed this in the UK  Most of us consumed with budgets and other daily challenges  Sometimes, we need to take a step back and remind ourselves this has been a …  Tough …  Demanding …  And challenging decade. {Gen Dunwoody – Introduce LTG VIA and Decade @ War}

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Takeaway: We all have much to be proud of

GEN Dunwoody

A Decade at War . . .

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“In the past decade, America’s Army has been challenged and prevailed in some of the most daunting tasks in the history of our military.”
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~ SecArmy McHugh, 31 March 2011

5 9

Facer – . . . Fighting on Two Fronts . . .
 Fighting two wars …  In Iraq …  Ended major combat operations in August of 2010 …  Now completing the drawdown  Increased operations in Afghanistan  One of the toughest combat environments...  … landlocked country …  … the size of Texas, with only 2% of its roads … few paved  … and 18 – 20,000 foot mountains … Takeaway: Building a better life for others
LTG Via
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Facer – People – Our Greatest Resource
 AMC is the largest employer of civilians in DoD  97% = Civilian - represents more than a quarter of all DA Civilians  Center-of-gravity for the generating force  Still Stressed – 22 Suicides since 2008 (4 this year)  Army focused on Soldiers – need complementary program and attention to civilians

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Takeaway: Working collectively to support our workforce

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Mr. Nerger Mr. Marriott

People – Our Greatest Resource

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Taking Care of Our People

12

Facer – Translating Intent into Action
 Institutional adaptation is the challenge of our time  It‟s hard but not impossible  Tendency to focus on the Operational Army  4 Decades without adapting the Institutional Army  An organization in motion … record speed … not in decades but years

Facer – Why is This so Hard?
 The Institutional Army …  Unfortunately many have become entrenched – which creates silos that hinder:  Coordination  Collaboration  Communication Takeaway: More agile/more flexible/more responsive

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Ms. Gerton

Why is This so Hard?

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“Institutional change is about doing things better, doing them smarter and taking full advantage of the progress, technology, knowledge and experience that we have available to us.”
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~ U.S. Army Posture Statement, 2011

17

Facer – Unity of Effort
(Slide Builds While Speaking)
 All about breaking down the walls between silos  Adaptation occurs right in the center – where the best ideas and talent from each silo is optimized  We can exchange information that leads to informed decisions  Number of examples … DOL transfer, FMX, Special Installations …  It used to be that information was power … today, shared information is power Takeaway: Shared information breaks down the barriers

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Ms. Gerton

Unity of Effort
Materiel

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Cooperate People Coordinate Collaborate Communicate Services

Readiness
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Breaking Down the Silos

18

Facer – Why Adapt?
 Shared this at one of my first AEBs  Primary focus during conflict:
 Buying new equipment to support the Operational Army  Good reasons for doing that…

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 We don‟t like to get rid of anything (“just might need it”)  Very expensive – no longer affordable

{Gen Dunwoody – Introduce Mr. Dwyer and Why Adapt}
Takeaway: If we don‟t adapt, we won‟t find a different way of doing business
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Facer – Multiple Management Info Systems
(Slide builds while speaking)
 Led to numerous independent information systems  Iron Mountains of equipment after Desert Storm    Thousands of containers in theater No visibility on what was in them Or where they were o Shipped containers into the theater o Shipped them back without opening them  Committed to Intransit Visibility and Total Asset Visibility Takeaway: We are facing the same challenge today
Mr. Dwyer
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Multiple Management Info Systems

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CIF-ISM AWRDS

LMP MENS-E

SAMS-IE

SAMS-E

PBUSE

TEWLS WMMS
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TAMMIS

SARSS

45 23

Facer – SECARMY Guidance
 You directed us to fix just a few short months ago  Thanks – we would not be where we are without your guidance, direction and top-cover  Took us a year before your guidance to get to this point  Now we need to push this mission (ball) into the end-zone  Still a few antibodies out there … we continue to educate and inform  Highway example (was on highway, now in express lane)  All about culture change

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Takeaway: Providing visibility and speed we‟ve never had before
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22 March 2011 “I am designating Commander, U.S. Army Materiel Command (USAMC) as the Army’s LMI with the mission to synchronize the distribution and redistribution of Army materiel in accordance with Department of Defense and Army directives and priorities.” John M. McHugh
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22 March 2011
“I am directing the Commander of U.S. Army Materiel Command (USAMC) to undertake the task of creating a repository for Army logistics data that will provide a single, common location for all Army materiel stakeholders to access, acquire and deliver data and information for managing Army materiel.” John M. McHugh
47 24

Facer – Integrating and Optimizing
(Slide builds while speaking)
 “Brute Force” was way of the past … now must take fundamentally different approach … that will lead us to …  … one authority …  … one source of repair …  … one information system …

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 … all working together to achieve complete transparency and visibility of
every piece of equipment across the Army  Already made progress ... can now  see ourselves better ... in real time versus just a projection  provide pinpoint disposition for what‟s coming out of our depots and arsenal  And better focus our resources on what needs to be repaired Takeaway: Much accomplished … more to do {Example = Tanks and/or Howitzers} Mr. Dwyer [Transition to BG Brian Layer for Demo] BG Layer UNCLASSIFIED
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Efficiencies Directive
Mission: Conduct a review to create a more agile and cost effective research, development, and acquisition system by analyzing work flow and optimizing organizations, processes, and procedures to support the work.
Key Tasks • 150 day review • Save $3B annually by the end of 2015 • Deliberative approach to process and cultural transformation • Optimize PEO and AMC responsibilities
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More efficient, effective, and agile and free-up resources to build the Army of the future.

$3B Savings Will Require a Team Approach

28

Facer – Strategic Issues (Technical)
 You told us what you wanted us to do …
• These strategic issues get at the “Why” • The underlying issues that if addressed will get at the “So What”

2. Process inefficiencies, to include multiple layers of management result in reduced effectiveness and efficiency; leads to increased: throughput time, cost, and distance from customer.
3. Army research strategy that lacks Army-unique focus results in ineffective use of available research $ and insufficient transition to development programs. 4. Capacity of depots, arsenals and storage plants difficult to synchronize with Army OPTEMPO resulting in over/under capacity and lagging response.

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What We Found . . .

29

Facer – Strategic Issues (Environmental)
 Strategic Issues con‟t …

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Takeaway: These “environmental” issues are the root cause of the majority of the current issues we currently face and will be the most difficult to address / resolve

Ms. Gerton
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Strategic Issues (Environmental)

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5. Lack of consensus on organizational roles, missions, and functions combined with misalignment of authority, responsibility, and accountability result in multiple faces to Soldier, unnecessary overlap, tension among organizations, and competing objectives. 6. Lack of trust leads to redundancy within and between AMC & ASA(ALT) resulting in increased cost and unnecessary competition.
7. Lack of enterprise-level incentives and governance results in overlap, duplication of investments, lack of strategic focus, inefficient enterprise management and sub-optimal materiel solutions.

Specified Task to Strategic Issues Cross-Walk
Specified Task Strategic Issue
1 2 3 4 5 6 7
Conduct a review to create a more agile and cost-effective research development and acquisition system by analyzing work flow and optimizing organizations, processes, and procedures to support the work Optimize PEO and AMC responsibilities to improve the agility and reduce overlaps and redundancies in the Army‟s [RDA] activities… the study should recommend the skills required in the PEOs and those needed to be developed and maintained in AMC Create an integrated strategy for efficient and coordinated research and development through item management and sustainment Organize efforts to identify technologies that must be in-house while leveraging from commercial, academic, and other government laboratories Reduce life-cycle costs from cradle to grave Support the Army‟s goal to create an auditable financial system & time-to-task reporting for all sources of funds Develop a plan that pursues a significant reduction of personnel and annual savings of $3B by the end of FY 2015, with initial savings realized by the end of FY 2012 and FY 2013

1.
2.

X

X

X

X

X

X

X

X

X

X

X

3. 4.

X

X

X

X

X X X X X X X X X X

X X X

5.
6. 7.

X

X

X

X

X

X

X

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The Strategic Issues Mapped to the Specified Tasks

31

Facer – ASA(ALT)/AMC Funds Flow ($FY10)
 First time

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• We‟ve had this level of visibility
• Has taken 115 days to compile • Indication that our financial systems are not set up to enable effective management or support quick financial decisions

Takeaway: Never had funding visibility to this level before and we need to change our funding flow / processes

Merging of EE, SS, and All program LC funding programmed from single PEG part of TT PEG ARL would not be allowed to accept reimb work Electronic contracting provides direct feeds to std financial systems LMP system includes time and attendance reporting linked to workload Fully commits / enforces corporate ERP solution and max divestiture of legacy systems Need to assess impact on SLAD None

Minimal

TBD

Accounting system does not provide visibility into work funded and accomplished
Not taking advantage of full ERP capability via unauthorized workarounds causes inability to divest legacy sys & realize ROI via reduction of staff

Virtual Contracting
RDE AWCF

Minimal

None (note: excludes 6.1/6.2) TBD

S/W Mgt Support

None

$10-$100‟sM
(initial est.)

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Lack of Funding Traceability and Visibility

35

Facer – Time Line
 On track to deliver recommendations to you next month

Facer - Contracting Workload vs Personnel
 Big business … high visibility … must keep up momentum  All about capability brought to the fight

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Takeaway: More work to be done

Mr. Parsons
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Contracting Workload vs Personnel
$166B

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$132B

$35B

Gulf War I

Bosnia/Kosovo; 1995 - present

9/11 OIF, Attacks 2003OEF, 2001- present present

Gansler Report

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All About Becoming More Efficient and Effective

40

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Facer - Key Takeaways
 No Facer comments

Mr. Parsons
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Key Takeaways
 Contracting must become an Army core competency  Contract dollars as percent of DoD outlays declining slightly, but will remain higher than pre-Gansler levels  As budgets decline, we need to become better and smarter buyers  Need the right number of people (mil and civ), with the right skill sets, at the right place  Now is not the time to be penny wise and pound foolish

Our Organic Industrial Base (OIB)
 Industrial base has assumed increased risk over the years  MCA (and other) funding continues to decline  Establishment of an Army Initiative for the OIB and Materiel Enterprise working to correct imbalance by 2020

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First Time With This Level of Visibility

44

Facer – Bottomline: It’s All Possible With Our People
 Can‟t do it without our team of professionals  Sampling of some of our awards since FY10